PowerShares Canada expands smart beta suite with new low-volatility ETFs

TORONTO, Sept. 8, 2014 /CNW/ - For months, Canadian investors have been inundated with predictions of when the next market correction will occur. Many investors may want to reduce volatility in their portfolio without sacrificing their exposure to global stock markets.

In response to this need, PowerShares Canada today announced the listing of two new smart beta exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX). Both ETFs have now closed the initial offerings of units and will be available for trading on TSX when the market opens today.

The new ETFs employ a low-volatility strategy to provide investors with access to the world's equity markets.

"A low-volatility equity index does more than reduce risk. Historically it has resulted in higher long-term performance than cap-weighted indices," said Michael Cooke, Head of Distribution, PowerShares Canada. "Income-oriented investors may also benefit from a low volatility strategy, because these have traditionally offered higher yields than the broader market."

PowerShares S&P International Developed Low Volatility Index ETF (ILV) seeks to replicate, before fees and expenses, the performance of the S&P BMI International Developed Low Volatility Index. The Index is designed to give investors exposure to the 200 stocks from the S&P Developed Ex. US & South Korea LargeMidCap Index with the lowest realized volatility over the past 252 trading days as of the most recent quarterly rebalancing. ILV is competitively priced with a management fee of 0.40%.

PowerShares S&P Emerging Markets Low Volatility Index ETF (ELV) seeks to replicate, before fees and expenses, the performance of the S&P BMI Emerging Markets Low Volatility Index. The underlying index is designed to give investors exposure to the 200 stocks from the S&P Emerging Plus LargeMidCap Index with the lowest realized volatility over the past 252 trading days as of the most recent quarterly rebalancing. ELV offers investors access to the emerging markets at a management fee of 0.44%.

ILV and ELV complement PowerShares Canada's existing suite of low-volatility investments, which includes PowerShares S&P/TSX Composite Low Volatility Index ETF (TLV) and PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF (ULV).

To learn more about TSX-listed PowerShares ETFs, please visit www.powershares.ca.

About Invesco Canada Ltd.

Invesco Canada Ltd., operating under three distinct yet complementary product brands (Trimark, Invesco and PowerShares), is one of Canada's leading investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of solutions to institutions, organizations, companies and individual investors across Canada and around the world. Additional information is available at www.invesco.ca.

About Invesco Ltd.

Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd. The S&P BMI International Developed Low Volatility Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Invesco Canada Ltd.  Invesco Canada Ltd.'s PowerShares S&P International Developed Low Volatility Index ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates and none of S&P Dow Jones Indices LLC or its affiliates make any representation regarding the advisability of investing in such product(s).

S&P® is a registered trademark of Standard & Poor's Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd. The S&P BMI Emerging Markets Low Volatility Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Invesco Canada Ltd.  Invesco Canada Ltd.'s PowerShares S&P Emerging Markets Low Volatility Index ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates and none of S&P Dow Jones Indices LLC or its affiliates make any representation regarding the advisability of investing in such product(s).

In each of these low volatility strategies, volatility is defined as the standard deviation of the security's daily price returns and reflects the magnitude of the security's price fluctuations over the specified time period.

Because the low-volatility indices are comprised of the least volatile stocks within the S&P Developed Ex. US & South Korea LargeMidCap Index and S&P Emerging Plus LargeMidCap Index (the "broader indices"), they are expected to have less volatility than the broader indices from which they are drawn.  However, the low volatility indices will not have the same performance as the broader indices, and their performance over any given period may be better or worse than that of the broader indices from which they are drawn.

Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.powershares.ca.

There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.

Most PowerShares ETFs seek to replicate, before fees and expenses, the performance of the applicable Index, and are not actively managed. This means that the Sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the Index regardless of whether the financial condition of one or more issuers of securities in the Index deteriorates. In contrast, if a PowerShares ETF is actively managed, then the Sub-advisor has discretion to adjust that PowerShares ETF's holdings in accordance with the ETF's investment objectives and strategies.

ETFs are not diversified investments.

PowerShares Canada is registered business name of Invesco Canada Ltd.

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. PowerShares®, Leading the Intelligent ETF Revolution® and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC (Invesco PowerShares), used under licence.

© Invesco Canada Ltd., 2014

SOURCE: Invesco Canada Ltd.

For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, aysha.mawani@invesco.com


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